Addressing Clients' Unique Needs
The staff at Bond & Pecaro has amassed extraordinary experience providing valuation services for a wide range of advertising and subscriber-oriented businesses. Clients have confidence in the integrity of the firm's analyses. Bond & Pecaro's clients range from local radio and television stations, to national broadcasting networks, to international media and technology businesses. Whether the firm's clients require fair market or stock valuations, asset appraisals, or general consulting services, Bond & Pecaro has the resources and expertise to address each client's unique requirements.
Business valuations, also known as fair market valuations, provide an authoritative estimate of the total value of the assets or stock of a company. Such estimates are important for acquisitions, financing, compensation plans, joint ventures, and estate administration and planning. The firm's reports contain descriptions of the market, demographics, economics, and competitive landscape in support of the detailed financial projections for the subject properties. Each fair market valuation is detailed enough to be meaningful to industry specialists, yet accessible enough to make it useful for generalists. More information is available by clicking here
Asset Allocation Appraisals
An asset allocation appraisal provides a basis for establishing the value of tangible and intangible assets of a company for accounting, tax, insurance, transactional, and other purposes according to Accounting Standards Codification (ASC) Topics 350, 805, 810, and 820. Knowing the value of a client's assets is essential to ensure accuracy in financial reporting and optimization of tax benefits of an acquisition, to structure like-kind exchange transactions, and to determine depreciation and amortization of the assets.
Bond & Pecaro assists clients by making due diligence inspections of operating facilities and providing estimates of asset values for the purchase price allocation. Through a consultation, the firm's staff can provide guidance to clients in the acquisition planning and contract negotiation process that can enhance the future financial performance of a property. For more information about our asset appraisals, click here
The analysis of stock options and stock appreciation rights (SAPs) has become increasingly important to emerging technology companies. Depending on the scope of an engagement, Bond & Pecaro can establish the fair market value of the stock of a company. The valuation of stock or partnership interests is essential in connection with employee stock option and compensation plans, fairness opinions, gift, or estate tax planning, and other financial purposes.
Stock valuations, by their nature, require special sensitivity to applicable rights and restrictions, particularly in situations involving minority or partial interests and classes of stock with different privileges. By carefully examining and articulating these competitive and market characteristics affecting economic value, the firm's stock valuation reports provide clients with essential planning and decision-making tools. For more information about Bond & Pecaro's stock valuations, click here.
Accounting Standards Codification (ASC) Topics 350, 360, and 805 have outlined the valuation of intangible assets in modern business transactions. In today's economy, the valuation of intangible assets at telecommunications, technology, and media companies routinely fluctuates in response to such factors as competitive pressures, advertising cycles, the equity markets, demographic trends, audience tastes, and governmental actions.
Bond & Pecaro has established methodologies for valuing these important intangible assets at the time of transactions, as well as determining whether the values of these assets have been impaired. More information about impairment testing can be found by clicking here.
Machinery and Equipment
Bond & Pecaro has a wide range of experience in appraising machinery and equipment for broadcasting, cable, telecommunications, publishing, and technology properties. Our staff includes an appraiser certified by the American Society of Appraisers to appraise machinery and equipment. The appraisal of machinery and equipment requires careful attention to detail and documentation. An accurate machinery and equipment appraisal includes an onsite inspection of the assets, as well as consideration of numerous factors such as assemblage, installation, and other elements of value. A determination is then made of appropriate depreciation and obsolescence factors to determine the value of the asset. Bond & Pecaro has successfully supported our appraisals of machinery and equipment to the IRS, auditors, tax authorities, and assessors on numerous occasions. Having a Bond & Pecaro appraisal of machinery and equipment can save significant time, effort, and money over the long term.
Intangible assets typically constitute a substantial portion of the value of broadcasting, cable, telecommunications, publishing, and technology companies. The assets typically must be valued according to ASC 805, and may need to be tested for impairment under ASC 350 and 360. It is therefore an important part of any valuation exercise to properly identify and assign a defensible value to the company’s intangible assets. These assets can be customer-related, contractual, market-related, or based on a particular technology. Bond & Pecaro analyzes each intangible asset using the three basic approaches to valuation: the cost, income, and market approaches. Given the nature of intangible assets, the income approach is usually utilized in valuing these assets. This approach involves projecting the income that will be attributable to the intangible asset over its life. It also includes examining the tax benefits of the asset, as well as adjustments for any contributory assets.
For a technology company, intellectual property can be the cornerstone of the company’s value. Intellectual Property may need to be valued for reasons such as a corporate restructuring, strategic planning, licensing, and other reasons. The valuation of Intellectual Property is similar in nature to the valuation of intangible assets in that the valuation relies on one of the three basic approaches to valuation: the cost, income, and market approaches. Given the nature of intellectual property, it is often valued using the income or royalty-relief methods. The income approach involves projecting the income that will be attributable to the intellectual property over its life. These projections take into account the nature of the intellectual property and its ability to generate revenues, the likelihood of obsolescence, competition, alternative technologies, and the like. It also includes examining the tax benefis of the asset, as well as adjustments for any contributory assets. The royalty-relief method projects the potential revenues associated with the intellectual property and applies a royalty rate or licensing fee to the revenues to estimate the costs savings consistent with owning the technology. These savings are adjusted for taxes and present value.
Fairness Opinions and Solvency Opinions
Bond & Pecaro can provide your company with a fairness opinion that provides an independent analysis of, and support to, a proposed transaction. These opinions are of a highly sensitive nature, and require careful attention to the relevant financial and operational aspects of the proposed deal. They can be performed on behalf of stockholders, investors, the company’s directors, or other interested parties. They can be required as part of related party transactions, restructurings, mergers, acquisitions, recapitalizations, and other corporate events.
Similarly, solvency opinions can be required for bankruptcy proceedings, collateralization of a loan, in cases where dividends are being declared, or for other reasons. These opinions require a detailed analysis of the subject company to determine whether the fair market value of the company’s assets exceeds its liabilities; whether the company is able to meet its debts and loan covenants; and whether the company has adequate capital or resources to meet its future needs. Bond & Pecaro can provide your company with an analysis that addresses these critical factors and withstands the high level of scrutiny that this type of document typically receives from the company’s Board of Directors, outside advisors, and investors.
Fresh Start Accounting
When a company emerges from Chapter 11 bankruptcy proceedings, it is required to restate all of its assets at fair value. Bond & Pecaro has assisted many companies by performing asset appraisals on the companies’ assets in order to comply with the Fresh Start Accounting regulations. The asset appraisal report provides the newly-reorganized company with a basis for establishing the value of the tangible and intangible assets and liabilites of the company. The new basis established for each of the assets and liabilities provides an accurate foundation for the company’s books as they emerge from bankruptcy proceedings.